MobileData Consumption will Explode in Latin America and
Middle East to More Than 2.5 Gb per Month, Says ABI Research

July 08, 2013 10:11 AM Eastern Daylight Time

SINGAPORE--(BUSINESS WIRE)--Only three regions—Latin America, Middle East, and Africa—will see a
mobile internet service revenue double-digit CAGR between 2013 and 2018.
This is underpinned by the strong per subscription data consumption
increasing at CAGRs of 45-49%. In other words, data traffic doubles in
less than every two years on average, thanks to the increased
availability of affordable smart devices in the near future. In 2018,
Latin America and Middle East are expected to see an average user
contributing more than 2.5 Gigabytes of traffic per month.

Low literacy rate has resulted in the low messaging volume in Africa.
However, with the fastest mobile subscription growth and over-the-top
applications being less prevalent, it will be the only region to enjoy
consistent positive messaging service revenue growth throughout the
entire forecast horizon.

“Nonetheless, a key determinant of the future consumption pattern will
be the regulatory policies in the regions,” says Ying Kang Tan, research
associate at ABI Research. “For instance, the recent implementation of
mobile number portability measure in Nigeria and the reduction in mobile
termination rate in Honduras and Jamaica will go a long way in shaping
the competitive landscape and encourage cellular usage.”

All these rising trends do not necessarily imply increased
profitability. Jake Saunders, VP and practice director adds: “Operators
in the regions need to be prepared to respond to new competition
policies. For example, a slash in termination rates means consumers have
fewer reasons to subscribe to different operators concurrently. The
battle to gain market share will be even more intense.”

ABI Research provides in-depth analysis and quantitative forecasting of
trends in global connectivity and other emerging technologies. From
offices in North America, Europe and Asia, ABI Research’s worldwide team
of experts advises thousands of decision makers through 70+ research and
advisory services. Est. 1990. For more information visit www.abiresearch.com,
or call +1.516.624.2500.